Pakistan's Ambitious PIA Sell-Off: A New Era in Aviation

The Pakistani government announced on Tuesday that it has approved several entities, including business conglomerates and a military-backed firm, to potentially acquire a stake in Pakistan International Airlines (PIA). The decision aligns with goals to sell a 51-100% stake in the struggling national carrier, aiming to generate funds and revamp cash-draining state-owned enterprises under a $7 billion IMF arrangement.

Among the consortiums vying for a stake in PIA are notable industrial groups such as Lucky Cement, Hub Power Holdings, Kohat Cement, Metro Ventures, and the Arif Habib Corporation. The group also includes entities like Fatima Fertilizer, The City School, and real estate firm Lake City Holdings. Additionally, the military-backed Fauji Fertilizer Company and Airblue, a Pakistani airline, have been cleared to enter the bidding process.

Pakistan's Privatisation Minister Muhammad Ali indicated that pre-qualified parties are entering the buy-side due diligence phase, expected to span two to two-and-a-half months, with the final bidding and negotiations slated for the fourth quarter of 2025. Meanwhile, plans for the Roosevelt Hotel in New York include potential outright sale or long-term lease, anticipated to yield over $100 million in immediate returns for Pakistan this year.

(With inputs from agencies.)